Jaguar took over London this week to launch its 'baby' XE sport saloon in a blaze of publicity rumoured to have cost around £4 million.

The new, make-or-break 155mph model — arguably the most important family car in the firm's history — was helicoptered into the capital before being whisked by speedboat along the Thames for an unveiling at Earls Court, West London.

But it's not all fluff. Cut through the razzmatazz and there's a real steely determination to succeed.

The XE S model is powered by the 3-litre V6 engine used in the F-Type sports car. It goes on sale next spring from £27,000

The XE, on sale next spring from £27,000, is Britain's challenger to Germany's big-selling BMW 3-series. The London launch was preferred to next month's Paris show to highlight the car's British heritage.

The XE S model is powered by the 3-litre V6 engine used in the F-Type sports car. But the full line-up will include a new super-efficient range of 2-litre four-cylinder petrol and diesel engines to be built at the firm's new £500million engine factory in Wolverhampton. These will offer efficiency of up to 75mpg with CO2 emissions of 99g/km.

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Jaguar says its new aluminium body makes it the lightest and most aerodynamic it's ever produced. It is the first Jag to be built at Jaguar Land Rover's Solihull factory, near Birmingham.

Design director Ian Callum says: 'Our mission was to create an exciting, dynamic design reflecting the XE's positioning as a serious driver's car. It bears a strong family resemblance to the F-Type and will stand out in the crowd.'

It has its own wi-fi hotspot to allow multiple devices to connect to the internet, controlled by an eight-inch dashboard touch screen.

The Earls Court venue has historic motor show associations and has hosted 14 Jaguar launches since 1935.

Each performance has highlighted significant moments in the near 80-year history of the marque. This week's show culminated in a spectacular footage of the XE, showing its journey from the new factory to the exhibition centre.

A helicopter carried the car along the Thames to Tower Bridge before it was placed on a highspeed landing craft. The final leg from Battersea Bridge saw it escorted by two Sixties Mark II Jaguar police cars into the Earls Court Arena.

Musical highlights of the event included Emeli Sande performing a new track, Feels Like, live on a floating stage in the middle of the Thames near the London Eye. There were also contributions from the Kaiser Chiefs, and VIP guests included fashion designer Stella McCartney.

Jaguar Land Rover's group marketing director Phil Popham said: 'The XE will be a true driver's car that looks great and the entry price makes it a very attainable.'' The Indian-owned firm will spend £3.5billion to deliver 50 new vehicle variations by 2020.

Booming Jaguar Land Rover said the launch was a sign of the firm's growing confidence and ambition, and a significant leap forward in terms of investment and expansion.

Chief executive Dr Ralf Speth said: 'The Jaguar XE is a vehicle at the very heart of the UK's manufacturing renaissance.' Speaking just as the Duchess of Cambridge announced she was pregnant with her second child, he added: 'Clearly this is a great day to announce new babies.'

The red, white and blue Union Flag is a big selling point for British exporters so if the flag goes, so does a strong, easily identifiable brand

Britain's car firms are getting increasingly concerned about the potential fall-out from a Scottish 'yes' vote for separation next week.

The red, white and blue Union Flag is a big selling point for British exporters, especially in the luxury sector as it denotes craftsmanship. So if the flag goes, so does a strong, easily identifiable brand.

As one industry leader told me: 'It's a real problem. The Union Jack means something around the world. It stands for British quality in design and engineering. It's a unique selling point.'

So with impeccable timing, German giant BMW this week celebrated the three millionth Mini to come off the line since it took over the firm 13 years ago. And it was painted in a bold red, white and blue (pictured left). BMW revived the iconic brand in 2001 with new Mini, somewhat larger than the original design by Sir Alec Issigonis, launched in 1959, which saw more than 5.3 million original Minis built and sold.

Curiously Bavaria, home of BMW, is in many respects a German version of Scotland, sharing many of its characteristics: fierce local pride, a strong sense of identity, mountains and lakes, and a reputation for being careful with cash. 'Freistaat Bayern' (Free State Bavaria), it calls itself. Culturally and politically it has considerable independence, but remains part of Germany. And makes superb cars. Was someone at BMW sending a subtle message, 'Freistaat Schottland', ahead of next week?